Starlink Overtakes FiberOne Broadband
Starlink, the satellite internet service operated by SpaceX, overtook FiberOne Broadband Limited in the fourth quarter of 2024, becoming Nigeria’s second-largest internet service provider. This data was shared by the Nigerian Communications Commission (NCC).
Despite its premium pricing, Starlink more than doubled its user base within a year. The number of subscribers rose from 23,897 in 2023 to 65,564 by the end of 2024. The rapid growth is driven by its high-speed connectivity, which can reach up to 250 Mbps.
Spectranet’s Decline
The largest ISP, Spectranet, has 105,411 subscribers in the country. However, they have lost 8,428 users compared to 2023.
What sets Starlink apart from Spectranet is that it operates via satellite, while Spectranet relies on fiber and terrestrial wireless networks. Both of these systems require expensive right-of-way fees, tower installations, and power infrastructure.
Consumer Complaints and Tariff Increase
Starlink’s growth is driven by increasing consumer complaints about the poor internet quality offered by mobile network operators and ISPs In December 2024, Starlink announced it would raise its subscription fees in Nigeria, increasing the cost of its standard residential service from ₦38,000 to ₦75,000.
This hike affected new customers, and existing users were set to transition to the new rate by January 27, 2025. However, as demand surged, Starlink delayed the price increase.
Regulatory Challenges
The company had previously faced a similar challenge. In October 2024, the NCC blocked Starlink’s attempt to raise tariffs, stating that the company had not followed the proper regulatory procedures.
The NCC later approved the hike on February 4, 2024, allowing telecom operators to adjust their prices. However, Starlink, unlike its competitors such as MTN Nigeria, Airtel Nigeria, and Smile Communications, has not yet implemented the increase.,
Nigeria’s Broadband Landscape Shift
Starlink’s growing presence in Nigeria signals a shift in the country’s broadband landscape. If this growth momentum continues, it seems that most users in Nigeria will choose Starlink.